ICRA upgrades rating of Jet Airways Rs 3,210-cr bank loan

Ratings agency ICRA today upgraded by a notch rating of Rs 3,210-crore loan facility given to Jet Airways based on improvement in cash flows.
The rating agency has upgraded the long-term rating assigned to the Rs 3,210 crore, fund-based bank facilities of Jet Airways to [ICRA]BB from [ICRA]C, a statement said.
"The rating upgrade takes into account the improvement in the liquidity and credit profile of the company, arising from improved operating performance as well as support from its strategic partner-Etihad Airways PJSC," it said.
The ratings reflect the strategic initiatives being planned by Jet Airways together with its strategic partner in reshaping its business so as to enable it to return to sustainable profitability and improve cash flows, it said.

This strategic alliance between the two airlines is expected to be mutually beneficial across all areas, including network growth, operational synergies and cost improvement through maintenance contract renegotiations, leasing of spare aircraft, procurement of fuel and other services etc. resulting in cost savings for both the airlines, it said.